Lab Assignment 7

# Lab Assignment 7 - t instead Only intercept is different...

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1. Plot the log( prepop ), log( mincov ), and log( usgnp /1000) against the time trend variable trend on the same graph. Save and submit a copy of the graph. lprepop -3 -2 -1 0 1 2 trend 1950 1960 1970 1980 1990 2. 1) Regress log( prepop ) on log( mincov ) and log( usgnp ). What is the estimate of the slope coefficient of log( usgnp )? Is it significant? Slope coefficient of log(usgnp) : -0.01219 ( p-value: 0.8913 ) ---- Not significant 2) Regress log( prepop ) on log( mincov ), log( usgnp ) and t . What is the estimate of the slope coefficient of log( usgnp ) now? Is it significant? Slope coeffi cient of log(usgnp) : 1.05735 ( p-value: <.0001 ) ---- Significant 3) Regress log( prepop ) on log( mincov ), log( usgnp ) and trend . What difference do you observe between the regression result here and regression result using

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Unformatted text preview: t instead? Only intercept is different from each other. Others are the same. 3. Detrend all the variables and run the regression using detrended variables. Compare the results with those you get from the regression using the time trend in the regression model. The result of detrended regression model is as follows: Parameter Estimates Parameter Standard Variable Label DF Estimate Error t Value Pr > |t| Intercept Intercept 1 1.32889E-16 0.00606 0.00 1.0000 x1 Residual 1 -0.16869 0.04361 -3.87 0.0005 x2 Residual 1 1.05735 0.17409 6.07 <.0001 Therefore, the slope coefficients are the same as those of regression using the time trend, but intercept is different....
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## This note was uploaded on 02/21/2012 for the course ECON 500 taught by Professor Professor during the Fall '10 term at SUNY Buffalo.

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Lab Assignment 7 - t instead Only intercept is different...

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